Riding the Natural Gas Wave

In the world of commodities, natural gas is like the ocean—vast, powerful, and full of potential. Recently, natural gas futures have surged above the critical level of $3.50, reclaiming their Anchored Volume Weighted Average Price (AVWAP) from the 2022 highs. This is akin to a ship catching a favorable wind, with buyers taking control of the price, steering it towards new horizons. When the price trades above the AVWAP, it signals that the bulls have the helm, and it's time to look for long opportunities.

Natural Gas Futures: Setting Sail Above $3.50

With natural gas futures trading above $3.50, the sea is calm for bullish traders. This level acts as a sturdy keel, providing stability and direction. This means the bulls have set sail and taken back control of price. As we navigate these waters, let's explore three natural gas stocks that are poised to benefit from this bullish tide: LNG, EQT, and AR.

LNG: A Tenfold Journey

Cheniere Energy (LNG) has charted a remarkable course, rising nearly tenfold from its COVID-19 lows. The weekly chart paints a picture of strength, with the stock sailing smoothly on a bullish trajectory.

On the daily timeframe, LNG is forming a solid base above a key Fibonacci level. If it can break out above $226, it sets sail towards its next Fibonacci target at $233, much like a ship aiming for a distant port.

EQT: Navigating Fibonacci Waters

EQT Corporation is another vessel navigating the Fibonacci waters with precision. The daily chart shows EQT respecting its Fibonacci levels, recently breaking out above its base level and heading towards the next target at $50.

Zooming out, the weekly chart reveals a multi-year base formation, suggesting a strong foundation. If EQT can break above $49.67, the next targets are $55 and $62, like a ship charting a course to new lands.

AR: Riding the Breakaway Wave

Antero Resources (AR) is riding a powerful wave, with its daily chart showing continued strength after a breakaway gap. The stock is making fresh 52-week highs following its base breakout. Above $36, AR presents long opportunities, targeting the $39.50 area and $43.50 levels, much like a surfer catching the perfect wave and riding it to shore.

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